Commonly overlooked reasons for a prenup

On behalf of Wood Law Firm posted in Divorce on Tuesday, December 6, 2016.

Florida residents may be interested to know that more couples than ever before are considering a prenuptial agreement before getting married. While many have traditionally shied away from prenups out of fear that it could strain the relationship before it has even begun, there are several good reasons to have one. Even a person with relatively few assets prior to the marriage could benefit from certain things being included in a prenup.

Protection of premarital property is only one small part of what a prenup can do. Millennials are using prenups to protect future assets as well. This often occurs when one person owns a small business. The premarital value of the business will be the only thing considered separate property during a divorce. The growth of the business that is likely to happen during the marriage would likely be considered marital property even if the spouse contributes nothing to the business during the marriage. A prenup can define the full value of the business as the sole property of one spouse.

The protection of intellectual property is another commonly overlooked use of the prenup. Intellectual property can be very difficult to divide because it is difficult to accurately assess its current and potential value. If the spouses disagree, then expensive experts may need to be called, and the litigation costs climb very quickly.

Couples can protect both themselves and their marriage with a prenup. Marriages often end up stronger because of the discussion and honesty having a prenup forces couples to have. However, each party should have separate representation from a family law attorney throughout the process.

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